>> kkr. great dividend. this environment is great for their business. >> stephanie? >> adt. i think the sell-off is way overdone. >> chs. >> pete? >> danaher. that does it for us. have a great rest of the day. don't forget to catch "fast money." halftime is over. "power lunch" and the second half of the trading day start right now. >> rally on, or maybe rally back on. stocks moving smartly higher after a one-day breather, we'll discuss whether this is a sign of the types and how healthy the market is overall. the south korean foreign minister in washington to meet with secretary of state john kerry to discuss what to do with north korea. we will ask peace negotiator extraordinaire george mitchell what should be done there. and a judge has ruled in a

case in stockton, california, that that bankrupt city is protected from its credit torres. it could turn out to be a devastating precedent for people with public pensions. my partner sue herera is at the exchange. a rally under way? >> yes, and a very nice one indeed. stocks are rising, putting the s&p 500 in striking distance of the all-time intra-day high. we will have more in later in the show. the dow jones industrial average is up 98 points on the trading session. on the flip side, the gold market plummeting, down $25 on the day. the s&p is up about ten points, 0.6 of a percent. the nasdaq up almost a full%. ken kenny, yesterday the market exhaled, today it's rally on again. >> even inhaling considering all the negative news out of the

europe this morning. every nation across the zone, right? sub-50, which is typically contraction, yet european marks all rallying. i think what that tells you is they're going to talk about paring back and keep pumping money at it. it can only go up. >> we're down a week, today europe opened, we're up on better volume. i think europe is helping us out. have you noticed this disconnect? look at the dow transports, down 28 points, put up the transports, the dow industrials are up 100 points. that's a weird disconnect going on. again -- >> they you werely trade together. >> again today we are seeing defensive names like health care stocks lead the rally, and consumer staples, big cyclical names like transports, some of the industrials, and materials names lagged behind. you this knolls two weeks going

on. >> how much is this we look better than most other parts in the world and the retail investor is listening to cnbc, saying this rally has more to good. >> i think we are the belle of the ball in terms of all global markets, we are feeling better, looking better, strategists talking about what the second half of 2013 will be, so when money gets nervous, it is certainly coming here, right? but we're teasinging one against with the 1576. why is it all going into health care, consumer staples, and why the transports? >> i think that's the disconnect. >> why is the growth part struggling? >> is it just for the moment taking a breather? we're struggling with these highs again, not -- will we get through it yes, but once again we're hitting our head and stopping. >> and we have a data point at the end of the week.

that will be key to the market. thank you, gentlemen, very much. quiche, quiche is the recipe of the day. >> and let's go to a real man. ty, do you like quiche? >> i like quiche. the italian guy making quiche, i love it. goldman sachs making move on a couple big-name stocks. it downgraded hewlett-packard, explaining that expectations could face downward revisions because of weakness in personal computer sales. humanity packard as you see there, down 6% today at 2186, and that is a major move, obviously. apple moving the other way, but loumen removed apple from the conviction list, saying the most recent product cycle has not driven market share and new user growth that the company anticipated. after being down late yesterday, apple is higher by 775, or about 2%. what's good for the goose, good

for the gander, you downgrade apple, and hewlett, bank of america, downgrades you, goldman, take that, from neutral to buy. they say the stock is up some 14% since the beginning of the year. that makes it more fully valued. 147.31 the quote on goldman up by about 1%. sue? ty, one of the things they're talking about here, the sign that the u.s. economy is on the road to recovery, strong auto sales for march morning phil lebeau has the details. hi, phil. >> these were solid numbers. it capped a very strong first quarter. let's look at the march numbers. generally speaking, when you look at the numbers most are close to or maybe a smidge below expectations, but generally speaking across the board -- a couple things stand out. crossover utility vehicles, we've been talking about if for some time. well, the improving economy and pent-up demand, that drove

double-digit gains. they surged stronger in march, and take a look at pickup truck sales. this is important, because pickups are a good gauge of what's happening with the contractors, small business, and housing market. the improving housing market also drove relatively strong pickup sales in march. and electric vehicle sales, this caught a lot of people by surprise. in the first quarter, tesla outsold the chevy volt and nissan leaf. if you look at shares of tesla, we've been talking about it for some time. now at a new all-time high. sue, don't forget later today, they'll have an announcement regarding what he considers important news from tesla. many believe it might be him taking a stake in the country. >> he's always a surprising guy. he never disappoints. does this surge in auto sales signal good times ahead? dave winston is on the phone, the senior equity analyst at

morningstar. thanks for joining us. what is your overall outlook? they were expected to be good numbers, but can that continue? >> i do think they continue. i've been telling. >> i do think there's still room to grow. important to remember bag in 2009, we had more than in the u.s., really the worst per capita year in modern times. i went all the way back to 1951 -- >> i found it interesting that the two stocks that you like best out of the group are ford and also gm, and a couple years ago, that probably wouldn't be the case, but you maintain this is a very different detroit, making much more competitive products than we're used to in the past. >> yeah, you know, i've been covering this sector for about

six years, in the car lineup, small cars and mid size, it's just night and day how much better the product is there. you may recall a few years ago when the new generation, gm was selling those for about 7500 more. i think you'll see that with the chevy impala that just started production yesterday. the pricing will go up, and that's very good news for gm. >> certainly. people just aren't giving the new detroit i think a fair shake. if you look at the financials, this is reasons to be scared off by it, underfunded pension in europe, of course, but they make most of their money in the u.s., and in gm's case, in china, too. those markets have room to grow. >> what don't you like. >> just in the dealer space, maybe as momentum investor, people might consider that, but we're value investors here at morningstar, and just on a

casual base they like fairly valued. >> thank you very much. appreciate it, dave. ty, up to you. >> moving up there by 1.22. 6-plus percent. this after carl eye sawn took a 9.3% stake in the speech recognition company. julia boorstin has more. >> reporter: well, tyler, you may not have ever heard of nuance, but its technology has likely heard your voice. it's the leader in speech recognition, powering everything from apple's siri to customer service to new ads that talk back. >> should i buy that ring? >> you should definitely buy it. >> reporter: just yesterday it

announced a partnership to tackle the ad market to make them more engaging and effective. nuance also makes dragon speech-to-text software, transcription schools for health care providers, businesses and the likes of microsoft windows action and it announced it's even integrated into tvs, with a set 6.7 million cap, shares have declined as its margins have fallen on increased investments in r&d and marketing, but today the stock is up nearly 6% on icahn's investment. icahn says his investment right now is passive, but you'll never know when he'll go active and icahn did not respond to cnbc's request for comment. back over to you. >> thank you very much, julia. credit suisse downgrading morgan stanley to neutral. here the reason -- valuation.

the stock is up nearly 30% over the past six months. a five-cent gain of about a quarter of a percent. sue? ty, fannie mae earned the biggest annual profit in the mortgage company's history, helped by a record fourth quarter, of course. the 2012 gain driven by the housing recovery. eamon javers has what it means for the government-controlled company. the. >> it's a pretty astonishing turnaround in washington, of course, we all remember it being the epicenter of the 2008 financial crisis. let me walk you through the details. the ceo of the company said the 2012 results were terrific, and said they represent a turning point for the company. came in the fourth quarter,

fannie mae says it's paid taxpayers billions in dividends since 2008. the company now respects to remain profitable. that raises a big question, which is what happens to fannie mae and the sister company. they were put into conservatorship, now will the movement toward housing reform and replacing fannie and freddie, will that be stalled as a result of these profits sort of taking the urgency out of the debate, particularly because this is a town that is drowning in red ink. fannie mae, ironically may represent one of the rare patches of black ink in a town that's otherwise consumed by debt.

well, they certainly have a the lo of of other things they could put to the front burner. >> there's always something. when we come back, we'll talk about the market, and talk about dealing with the north koreans. we'll talk live with former senator george mitchell, who was special envoy to the middle east. also charms of the northern ireland peace talks. acceler-rental. at a hertz expressrent kiosk, you can rent a car without a reservation... and without a line. now that's a fast car. it's just another way you'll be traveling at the speed of hertz. tens of thousands of dollars in hidden fees on their 401(k)s?! go to e-trade and roll over your old 401(k)s to a new e-trade retirement account.

none of them charge annual fees and all of them offer low cost investments. e-trade. less for us. more for you.

welcome back to "power lunch." i'm josh lipton.

valero energy dropping hard near the lows of the session right now. valero telling cnbc at the cost of complying with new pollution studs for gasoline will cost hundreds of millions. the epa, remember, wants to reduce the amount of sulfur in gasoline. valero telling us it will cost them between $300 and $400 million. equipment upgrades. other refiners also falling. tyler, over to you. the south korean foreign minister is in washington where he will meet with john kerry this afternoon, as both countries decide how to responsibility to the increasing bellicose rhetoric from north korea. senator, welcome. how worried should we about about north korea and its ability to disrupt commerce or

obviously something worse than? >> we should be very concerned. at the moment there's a wide gap between their rhetoric and their actions. while they're declaring a state of war, they're not taking any obvious or overt actions to prepare for it, but i do think you have clearly a totalitarian regime dominated to an extraordinary degree by the military, and a young leader being tested and trying to prove himself as a tough guy to the military leaders. so it's a volatile combination. when you add to it the isolation, i think their lack of knowledge and sophistication about events around the world, it has to be taken seriously. although i don't think we should be alarmed and i think the president and secretary of state have struck about the right balance in how to deal with it. >> i was speaking to someone yesterday, senator, who pointed out ironically that the new leader of north korea is actually the longest-serving head of state now in that

region, japan, south korea and china included. very ironic thought there this 29 or 30-year-old whom we all don't know much about, other than dennis rodman, is in charge here. where is china in all of this? and how do you handicap the possibility that a misstep on either side could lead to a major confrontation between the u.s. and beijing? >> i don't think you can avoid the possibility, but i do think that we can take actions which make it remote. i think there's an internal division within the chinese leadership over just how much benefit comes from their relationship with north korea and the embarrassment and difficulty that the companies right now i think the chinese government won't show any overt crack in their wall of support for north korea, but i think they're recognizing it does come at a cost. i do think we have to be firm, and strong in support of our allies in the region, especially both south korea and japan, this

is having a dramatic effect in japan, as you've seen in recent reports there's an increasing sense of getting away from the almost total pacifism that they have taken. >> before we move on to the middle east, south korea is one of the great economic success stories in the past decades, how does this escalation of tensions affect it and its economy? >> i think it will affect it, because it creates a sense of anxiety, a disruption. there may well be some investments put on hold to see how this plays out. so i think the best thing for all concerned would be to get past this in some fashion short of open conflict, to calm any fears and anxieties that might have arisk. as you pointed out earlier, tyler, you have a brand-new

leader, an older man, but new leader this time around in japan, and new leader in china. so it's a time for a caution, because new leaders are more prone to make mistakes than older once. the president is just back from the middle east. i'd like to get your thoughts on where things stand with respect specifically to iran and syria, and how do you assess the possibility that the u.s. might have to use force in either of those nations? >> i think it's unlikely in syria. it remains possible if they continue to drive toward a nuclear weapon, the president has been pretty clear and firm in his statements that it will be unacceptable for a whole variety of reasons, some of which touch on asia which we have just been covering. in syria, i think it's unlikely the u.s. will intervene directly. we finished one 12-year war, trying to end a 14-year war. the last thing we want to do is start another decade-long

conflict. i believe assad can survive. how long it will take before he leaves i don't know for sure, neither does anyone else. history is very clear. often very bad rejeeps removed by revolution are followed by even worse rejeegimeregimes. that's what we have to be concerned about. you authored the mitchell plan, could you bring peace to the nation's capital? >> that's too tough, even for me. it's a tough situation. i will tell you it's possible. i worked very well with bob dole when i was a senate majority leader as a democrat and he was a rep leader. we had a good personal relationship. we still do. it's gotten tougher now. >> finally will the red sox have a better record than the yankees? >> at least for the next 24 hours -- well, they're not

playing again until tomorrow night, so it lasts three days almost. >> thank you, senator. good to be with you. >> thank you. which way are the prices he heading? mary thompson has the latest data. >> hey, there,ty her, the pricing data is mixed, though it will still cost you more than a million on average to buy a house in new york city, that is if you can find one. i'll have that story after the break. 1942. [ all ] fort benning, georgia, in 1999. [ male announcer ] usaa auto insurance is often handed down from generation to generation because it offers a superior level of protection and because usaa's commitment to serve the military, veterans, and their families is without equal. begin your legacy. get an auto-insurance quote. usaa. we know what it means to serve. and never back down.

who believe the american dream doesn't just happen, it's something you have to work for. ♪ we're for those kinds of people. because we're that kind of airline. and we never stop looking for a better way. it's how we've grown into america's largest domestic airline. we are southwest. welcome aboard. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. i never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. tdd#: 1-800-345-2550 but there is one source with a wealth of etf knowledge

tdd#: 1-800-345-2550 all in one place. tdd#: 1-800-345-2550 introducing schwab etf onesource™. tdd#: 1-800-345-2550 it's one source with the most commission-free etfs. tdd#: 1-800-345-2550 tdd#: 1-800-345-2550 one source with etfs from leading providers tdd#: 1-800-345-2550 and extensive coverage of major asset classes... tdd#: 1-800-345-2550 all brought to you by one firm tdd#: 1-800-345-2550 with comprehensive education, tools and personal guidance tdd#: 1-800-345-2550 to help you find etfs that may be right for you. tdd#: 1-800-345-2550 schwab etf onesource-- tdd#: 1-800-345-2550 for the most tdd#: 1-800-345-2550 commission-free etfs, tdd#: 1-800-345-2550 you only need one source and one place. tdd#: 1-800-345-2550 start trading commission-free with schwab etf onesource. tdd#: 1-800-345-2550 call, click or visit today. tdd#: 1-800-345-2550 investors should carefully consider tdd#: 1-800-345-2550 information contained in the prospectus, tdd#: 1-800-345-2550 including investment objectives, risks, tdd#: 1-800-345-2550 charges, and expenses. tdd#: 1-800-345-2550 you can request a prospectus by calling schwab tdd#: 1-800-345-2550 at 800-435-4000. tdd#: 1-800-345-2550 please read the prospectus carefully before investing.

welcome back to "power lunch." fresh data is out on new york city's housing market. mary thompson joins us with the state of the manhattan housing -- >> reporter: the pricing numbers are a little confusing. that's because the city's real estate firm calculate a total quarter's closing in different ways. the one thing all of them can agree so on is right now if you are a buyer in new york city, there isn't a lot to choose from. here's independent appraiser jonathan miller. >> i think it's all about inventory. i think that the supply that is available is extremely low. it's unprecedented. >> reporter: in the first quarter, inventories in new york city declined by 34.4%, the

lowest levels in 12 years. total sales, though, were up 6.3%. tight inventory is a biproduct of two trends. first homeowners are reluctant to sell, because they have little or negative equity and can't trade up. second, tight credit. as for the increase in first quarter sales, miller said the rate-sensitive lower end of the market remains strong, while the middle market of 1 to 3 million -- as for -- inventories there are more pawlentiful than in the lower end. the high end's impact reflected in two very different readings. noting a 1% increase to just over 1.3 million on the average price. brown harris stevens saw a 1% decline. keep in mind a lot of high-end sellers were rushing to close before year end.

they wanted to a void paying higher taxes in the new year. there were a lot more sales of 10 million plus in the fourth quarter than normal and a lot fewer than 10 million-plus sales. that pushed down the price of brown harris stevens, their calculation. keep in mind, because the inventories remain tight, the outlook is for firming prices in new york city. sue, back to you. >> thank you very much, mary. as we continue here on "power lunch," the dow jones industrial average is up 85 points, so stay tuned to the money manager who oversees more than 3 billion, he'll tell us which way he thinks the market is headed. with the fidelity guided portfolio summary, you choose which accounts to track and use fidelity's analytics to spot trends, gain insights, and figure out what you want to do next. all in one place. i'm meredith stoddard and i helped create the fidelity guided portfolio summary. it's one more innovative reason

serious investors are choosing fidelity. now get 200 free trades when you open an account. welcome to the new new york state. what's the "new" in the new new york? a new property tax cap... and the lowest middle class income tax rate in 60 years... and a billion dollars in tax breaks and incentives. new opportunities for business. over 250,000 new private sector jobs were created over the last two years. and 17 straight months of job growth. with the most private sector jobs ever. lower taxes, new incentives, new jobs, now that's news.

to grow or start your business in the new new york visit thenewny.com

welcome back to "power lunch." i'm steve liesman. fed president lockhart in a speech he says he sees asset purchased from the federal reserve ending, quote, later this year or early next week. it's linked to his confidence in a positive economic outlook. he then goes on to give something of a test for what it

would look like. several more months of positive data, especially in the range of employment data, would give me confidence that the economy has real traction. he says in his speech that they have diminished, despite cyprus, less potential shock from europe than a year ago. business op mitch in the u.s. is on the rise, and po, he ghoes on to discuss better data for housing and the consumer, says concerns about the consequences of quantitative easing are quite valid, but then he essentially answers in one by one, saying they don't rise to the level of him voting against additional quantitative easing. he sees growth just a bit north of 2% in 2013, but worries that the unemployment rate could rise with a better job market if the rate increases, sue, say that ten times fast. >> steven some of the newswires

have him using the word tape-a-rang. i'm hearing behind me a lot of the guys want clarification on the language. >> well, what i know, sue is what i basically reported there, that he sees that ending later this year or early next year. i did not see the word tapering. i'll ask my assistant if he sees that work. >> it's just what they're buzzing. what they're saying behind me is, is this the fed's exit strategy now? that they're going to end by the year or not? maybe we can get some clarification. >> tapering bond buying may come near the year end. i would point out, sue, that that is very much in the outlook. people have this tapering beginning sometime september or october. that seems to be about the average. so the reason we're watching lockhart, too, as we're saying

is he's very much in the center of the board. if he had any opinion that was more dovish or more hawkish, we would really be paying attention, but i think he's saying what's in line with the federal reserve. >> they're buzzing about it down here. thank you, steve, so much. gold prices are -- sharon, it was not a pretty sight down there today. >> not at all. gold prices down about $25 or so, below a key technical level, below 1577. and a lot of it has to do with rotation that we've been telling you about out of gold and out of safe havens into riskier assets into equities. rallying the dollar not helping the gold price, either. keep in mind we have seen investors actually taking their money out of exchange-traded funds as well, and if that continues we've also seen the gold price slip. we've seen silver decline significantly in this session, in fact at an eight-month low.

back to you. >> thank you very much, sharon. bob pisani, they're talking about the fact the language at this point is very important to the market, because the big debate is when does the fed take the punch bowl away. >> lockhart is a voting member, so has tremendous weight. there's a big difference from ending to tapering. so the exact language is very, very important to get the nuance. i think that's what people are trying to figure out here. so it looks like tapering, and i don't think as steve noted, i don't think that's terribly surprising. if the word ending is used, my head picked up a bit. >> that's what they were worried about behind me here behind post 9. the markets are holding up pretty well. >> the important thing about it today, again, look at that where you have the dow industrials on the up side. i want to do show you what the transports are doing, as well as

mid caps and small caps. they're lagging the market overall. look at the transports. that is very strange. the mid capping are down as well. the russell is basically flat. what you see here is, move on to the sectors, you see brisk off names, you see the health care and consumer staples leading two weeks now, this has been the story. these are cyclical names to the down side. just put up the cyclical versus the consumer index. there's the cmr and cyc. you can see in the last week or so, two weeks, the cyclicals are down 1.8% and consumer index up 3.2%, so again this risk-on trade continues, even though you have indices continuing to move to the up side. >> bob, thank you very much. to chicago, rick santelli tracking the action in the pits. >> we're at 186, but that's still up three basis points. yesterday we traded the lowest yield since the 23rd of january.

if you look at these two barclays charts, the spreads continue to widen from mid march very tight levels. if you look at the mub, very little response to what goc on from stockton, california. and last but not least, the pound is not having a good day. look at this intradade chart. sue, tyler, back to you. >> thank you very much, rick. the market is up 92 points with the dow and s&p up more than 10% in the first quarter, the nasdaq higher by 8%. we're in the new quarter. how will it fare? as jerry castellini joins us. good to see you, jerry. you're bullish, you think we can continue. >> absolutely. in your previous conversation about lockhart's comments and the end of qe to me is probably the most bullish thing i've heard and continue to hear in this market. more angst over the idea they're

the only game in town. the reality is if the fed were able to stop using qe, it would imply the economy has really taken off. >> it would, but in the past when we've had suspicions that perhaps they're ready to take the punch bowl away, as they like to say down here, the market has sold off. maybe it is finally coming to the realization that taking that combination away is bullish. >> exactly. that last five years, we've been in this post-crash environment where everyone's so afraid of their own shadow, all they can worry about is whether the fed will be there or not. the world that most equity investors worrying about is a world with contracting economy and decelerating labor force, and out other things that don't happen right now when auto sales, housing, and all the other indicators are continuing to expand. if we get to this point at the

end of the year that lockhart is talking about, you would be seeing three-point plus percent, and global growth recovering at a much faster pace. that's the world he's describing, which is what most people are missing. when we get to that point you'll have a much higher stock market significantly higher earnings and it is concerns will be about a blowoff, now about the stock market somehow turning around. that's the complete mismatch between the environment we've been in and the one we are in now. >> what do you invest in, then? the market has not really behaved as it normally would, given the underpinnings of better corporate earnings, a lot of cash on the balance sheets, et cetera, et cetera. what do you buy right now? >> that's right. what we've seen all along is people reluctantly getting back into stocks, but only names like p & g where they feel there's little downside risk. we haven't begin to see movements into energy, a

substantial rally in financials, which i bl believe is heading our way soon. those types of names will be the middle cycle -- the names that should really start performing well in this part of the market, and expect those names to be where you'll see big dollars put and taken out of defense i have been sectors. >> jerry, good to see you again. thank you. >> wonderful. ty, up to you. sue, thank you, the build market charges along, but investors are always looking for dividend place. jackie deangelis has your options. >> dividend play is always on the radar, but with 81% of the s&p 500 companies paying them, there's definitely a lot of options. which sectors tend to pay the most, which companies get the mvp. we have that and more when "power lunch" is back. [ male announcer ] they say that hard work

is its own reward. but there's nothing wrong with enjoying a little extra reward. ♪ that's why southwest built a better rapid rewards program with unlimited reward seats, no blackout dates, and points that don't expire. rewards that actually reward you. we are southwest. welcome aboard. ♪

[ female announcer ] you're the boss of your life. in charge of long weekends and longer retirements. ♪ ask your financial professional how lincoln financial can help you take charge of your future. ♪ welcome back to "power lunch." i'm josh lipton.

check out mcdonald's, enjoying a day in the green, making a in 52-week high. for a technical take, i checked in mark newton of gray wolf. for traders out there, he says mcd still looks attractive. he says today's move improves the technical condition. and the stock could move to 110 from here. tyler, back to you. >> thank you very much, josh. hmo stocks moving higher. it's a reversal that followed intense lobbying from the health insurance industry and members of congress. coat cohen has the details. >> the obama administration and shareholders with providers bring a big sigh of relief. maybe beneficiaries, seniors, retires as well since the spin is it provides stability and improves choice. the plan was to lower reimbursements by 2.3% as a part

of a way to customer costs. instead, after that, heavy lobbying, or as the administration says, careful consideration, to insurers and providers will go up by more than 3%. talk about a reversal of fortune. we'll click through the stocks. you can see the pattern is similar. they all fell sharply, rebounded with the market, but lost steam against as the reimbursement rates initial lip came out. the cut coming back now today, look at cigna, humana, all is well, right? not so fast says the ceo of humana, says other cuts pretty much wipe out the increase in reimbursements. we are pleased that they recognize the significant negative impact of the initial rate changes, but says there are meaningful challenges in certain geographies. the stocks are getting a healthy, healthy boost today.

sue? >> thank you very much, scott. bull market or not, dividends per share for s&p companies in the 500 index grew last year by 16%. the number of companies who pea a different. jackie deainge his is here to break it all down for us. >> the number of companies paying a dividend over the trailing month period hit a new 13-year high of 405 or roughly -- according to facts set. they also point out in terms of sector, it was technology, financials, consumer discretionary, they were the top three leaders in year-over-year growth. in terms of the aggregate payout ratio, telecommunication services, they have the highest payout ratios for the 11th consecutive quarter. the dividend yield is slightly more than 2%, in line with the ten-year daily arches. the top ten companies paid on a trail 12-month basis at&t,

exxon, ge, microsoft, chevron, j & j, pfizer, p & g, wells faro and philip morris, those names not surprising, but some of the by dividend yields were l brands, pit any bowes pep ko, and abbott labs. the bottomed line there are definitely a lot of companies that do pay dividends. these that we mentioned are some of the once analysts feel poised to go higher, because they allow that risk on the table, but offer a little protection because of the different payout, j & j just hitting an all-time high today. sue? well tell you about one college basket all coach that just hit the jackpot. then we will be joined by an executive of liverpool's soccer club to talk about the big business of football. stay tuned.

power is back in a minute. talk about a pay raise? florida gulf coast coach andy enfield, who made $157,000, and won two games in the ncaa tournament as a 15 seed has been hired now by usc out in california. his new salary -- all the way now to over a million. it's good to win in the ncaa. another athlete due for a by

pay race. robinson cano, his new agent is none other than jay-z. the rapper and business mogul is it signing cano, who will be a free agent this year. a big contract is anticipated. cano previously receipted by the baseball agent scott boris. football not that football, but soccer, as we call it here in the u.s. it may be a phenomena in the uk, but the liverpool club also happens to be owned by an american. john enry. nba star lebron james has a minority stake, ian eyre is the managing director of liverpool football club. good to have you with us. has has the barclays premier league being arguably the most global league in the world. what have they done that?

>> i think the most important thing is the level investment by the teams. over the last 10, 15 years in particular, the investment in the best quality, the highest wages have driven the best talent to the league. in addition to that, its broadcast partners globally have continued to show more and more of the games t. and that's increased the appetite. we now see the global phenomenon yoabout. we're on pretty much every screen in most cities around the world with the best quality of football. that itself gives everybody the right level of appeal. >> i spode top to bottom, one can make the clays it has the best quality, but the spanish clubs have had sort of the better english clubs when they've met head to head. >> they have more recently, but i think that's over the last few years, but i think it's a cyclical things, the european

champions league, you know, and different teams, but i think globally i think people would still say the premier league has the most appeal, probably more so than any of the other leagues. it's not a two-horse race. i think that adds to the appeal, you know, that it's a mixed opportunity. >> you mentioned a moment ago how the league has invested in the better players, facilities, marketing, and so on and so forth. there are a lot of non-english owner of football inclusion in engla england, including the club you work for. the english have not cottoned, might say here, to the american owners. they're afraid they'll they'll come in and strip the club of its costs, and make a big profit on the sale. do you see that? >> not really. we've had fantastic supports from john, tom and others at fenway sports. i think the most important thing

is understanding the heart of the brand, the important elements of this franchise or football club, and what we have seen is owners who are respectful of that. that's very important. if you have something that's 100 years-plus old improbably recognized, you need to treat it with respect. and we get that respect and the right level of sposht, and investing in the long term. >> ian, thank you very much. thank you also for sending the jersey. i left it on my chair at my desk. we're very grateful to you. we hope that liverpool gets back on top soon. >> thank you. thank you, gentlemen. a setback, keeping peace in the airlines coach section. will new york city lose its treasured 212 area code? that's all ahead in the power rundown. back in a moment. ♪

[ male announcer ] how could a luminous protein in jellyfish, impact life expectancy in the u.s., real estate in hong kong, and the optics industry in germany? at t. rowe price, we understand the connections of a complex, global economy. it's just one reason over 75% of our mutual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.

power rundown time. joining us is jane wells and bob pisani. first up, a federal bankruptcy judge has ruled that stockton, california, is eligible for court protection from its creditors. in today's yahoo finance question we asked -- 61% say yes, if they need the cuts to recover. 39% say, no, it's not fair to the pensioners. jane, since it's in your neck of the woods, what do you think? this has big ramifications out there. >> unfortunately under state law, calpers is not a creditor. so it will being if -- my feeling is if -- this should at least by on the table in the public sector.

united,. y brother-in-law who >> it's an interesting question. where do people figure in, so should pensioners be protected against, for example, bondholders? we had this in europe, dealing with deposit holders. i think it's illegal in many states, jane, right? to cut pensions. i think that's an interesting legal question. >> and vallejo got through bankruptcy without doing it, but san bernardino is in bankruptcy court with a plan to cut the calpers. "new york times" reporting how do you keep the peace between leisure and business passengers? it has to do with, do you want to sit next to kids? it's crowded on the planes, bob. what do you think? >> the story opened with a great aneck dote. a business traveler was in business class sitting next to

the 10-year-old and asked, could i move? i think that's a perfectly legitimate request, for a man in the business part of it. some of these airlines i've read are having some children's section. i think it's a great idea. you can't ban the kids, obviously, but we can work it out. >> just keep them from kicking the back of the 150e9. right, jane? >> i fly coach, because i'm cheap, and i get what i pa i for. if i was in business class paying thousands, i would want thousands better service. i have no problem with the business class people getting upset. >> let's move on. are we in danger of losing the beloud 212, a group of voice-over providers is hoping to get unused phone numbers which would free up the use of nits area code. new yorkers are incensed. >> i was shocked to find out 19% of the 212 numbers in new york city are unclaimed?

i'm surprised. a lot of people were angry when he got other kinds of numbers. the problem is if everyone has a 212 number, there's not much cachet. western civilization does no the hinge on this issue. >> miss jane? >> really? people care about this? maybe because i'm out in the 213, i'm more concerned about north korea sending a missile this way. >> that does put it into perspective. >> we'll get him a 212 number. >> that will go over big. up next, news from delta which literally kind of stinks. we'll tell you about that. with the dow at 96 points. but at xerox we've embraced a new role. working behind the scenes to provide companies with services... like helping hr departments manage benefits and pensions for over 11 million employees. reducing document costs by up to 30%... and processing $421 billion dollars in accounts payables each year.

helping thousands of companies simplify how work gets done. how's that for an encore? with xerox, you're ready for real business. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef before opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find some good people to help guide him, and he'll set money aside from his first day of work to his last, which isn't rocket science. it's just common sense. from td ameritrade. it's just common sense. i've always had to keep my eye on her... but, i didn't always watch out for myself. with so much noise about health care... i tuned it all out. with unitedhealthcare, i get information that matters... my individual health profile. not random statistics. they even reward me for addressing my health risks. so i'm doing fine... but she's still going to give me a heart attack.

we're more than 78,000 people looking out for more than 70 million americans. that's health in numbers. unitedhealthcare. ♪ ♪ no two people have the same financial goals. pnc works with you to understand yours and help plan for your retirement. visit a branch or call now for your personal retirement review.

delta says it still expects a profitable first quarter. right now delta trading down 1.12, almost 7%. in a separate development, delta has become the latest of the airlines to cut toilet space in favor of more seats, anything to increase revenue. sue? >> they're already small. how much smaller can they get? thanks, ty. we're up 94 points on theow